Domain Name Wire

Domain Name Wire

  • Landmark Business.com sale: “only” $2M

    1. BY - Oct 09, 2006
    2. Domain Sales
    3. 4 Comments

    The actual value of the landmark business.com sale was only $2M, not $7.5M.

    Until recently, Business.com was considered the highest domain name sale ever at a reported $7.5M. (There have since been higher domain sales, pushing business.com down the list.)

    But it turns out the $7.5M sale of Business.com wasn’t that much after all. It wasn’t a cash deal, and was for $7.5M in illiquid stock. We knew it wasn’t worth the full $7.5M, but we had no idea how much it was actually worth…until now. How much did the stock end up being worth? Only $2M, it turns out.

    This is according to Jake Winebaum, founder of eCompanies. eCompanies was an internet incubator that started Business.com. In a recent article in Newsweek, Winebaum points out that $7.5M in stock in an inflated company isn’t $7.5M in cash. When the company refinanced in 2004 it redeemed the stock for $2.0M.

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